G E -SOW022210.doc

HSCG38-10-R-J00006

ATTACHMENT A

STATEMENT OF WORK

FOR

T700-GE-401C ENGINE, MODULES AND COMPONENTS

1.0. GENERAL INTENTION: It is the intent of Aviation Logistics Center (ALC) to establish an overhaul contract for the aircraft engine T700-GE-401C used on the United States Coast Guard (USCG) MH-60J/T Medium Range Recovery (MRR) Helicopter through use of a firm-fixed price requirements contract.

2.0. SCOPE OF WORK: On an “as required basis”, the Contractor shall provide all necessary parts, material, labor, tooling, overhaul manuals, test equipment and facilities to evaluate and overhaul systems and subsystems of the HH-60J/T Helicopter power plant model T700-GE-401C, as necessary to conform with the requirements of this Statement of Work (SOW) at the firm fixed prices specified in the schedule of components.

2.1. APPLICABLE SPECIFICATION: The information contained in this section is not intended to be all inclusive nor to detract from or modify procedures outlined in the Army Depot Maintenance Work Requirement (DMWR) Manuals 1-2840-248-1 & 2 dated 15 May 1999 with the latest change revision, except where specifically noted herein. The Contractor must be OEM certified and have access to all necessary maintenance, repair and overhaul manuals, performance and test acceptance criteria, and data to ensure that equipment is overhauled and modified, calibrated, and operating in accordance with the current specifications. Where an application of “best commercial practice” principles is in conflict with the DMWR, the Contracting Officer may, upon request from the Contractor, approve deviation from DMWR requirements.

NOTE: (DMWR 1-2840-248-1-2 and Changes) – The USCG does not want to incorporate the Army’s recapitalization program. Parts in Table 2-4 (Compressor Case Vanes, Sectors, Levers; Compressor Centrifugal Diffuser; Gas Generator Stage 1 and 2 Blades & Shrouds; Power Turbine Module Stage 3 & 4 Shrouds which are identified as “Mandatory replacement” is related to engine performance are not required to be replaced 100% but shall be replaced if they do not meet DMWR Inspection and life build back requirements. The parts in Table 3-3.1 (Compressor Centrifugal Diffuser) that are identified as “Depot Life Limit” is related to engine performance do not apply.

2.2. ENGINEERING CHANGES: The following Engineering Change shall be implemented as required.

a. General Electric Engineering Change Proposal(ECP) 700158R1, Stage 3 Nozzle Area Increase in the T700-GE-401C.

3.0. DEFINITIONS: For the purpose of this contract, the following definitions apply:

OVERHAUL - The process of disassembly sufficient to inspect all the operating components to repair, refurbish and replace components and restore clearance and performance specifications in accordance with the U.S. Army Depot Maintenance Work Requirement (DMWR) Manuals 1-2840-248-1 & 2 dated 15 May 1999 with the latest change revision, hereafter referred to as the DMWR. Upon completion of the overhaul process, the component or end article will be capable of performing the remainder of its intended service life or tour.

UNUSUAL DAMAGE - Items which have been severely damaged due to mishandling, mechanical failure or crash damage.

SCRAP - A component that has been found to be Beyond Economical Repair (BER).

CANNIBALIZED - Components for which integral parts are missing when the component is provided to the Contractor for overhaul. Items covered in this contract which are received by the contractor missing consumable components are not considered to be cannibalized.

MODIFICATIONS - To make basic fundamental changes on items specified in the schedule when required by the Contracting Officer. These modifications will be initiated by OEM service bulletins or ALC engineering changes.

AOG - An “Aircraft on the Ground” (AOG) condition, indicating that an otherwise operational aircraft is temporarily grounded awaiting overhaul and return of the part or component. This condition requires the component be handled as a high priority, and that its return be expedited.

3.1. QUALIFICATION OF PIECE PARTS: The aircraft engine and its components are considered “flight safety critical aircraft parts”. The use of piece parts or components other than OEM or USCG approved parts is prohibited without the prior express written approval of the Contracting Officer.

4.0. SPECIFIC REQUIREMENTS: Equipment shall be overhauled and modified as necessary to meet current minimum functional performance and test specifications designated in the DMWR. In accordance with this contract the Contractor shall be required to perform the following:

4.1. RECEIPT OF ITEMS: Upon receipt of items for overhaul, the Contractor shall notify the Contracting Officer, Medium Range Recovery (MRR) Supply Cell in writing of the date of receipt and shall confirm the serial number of the items received (if applicable) and the delivery order number. Notification by facsimile or email is acceptable. Submit to: fax (252)335-6790, ATTN: Contracting Officer MRR Supply Cell. The Contractor will be notified when there is a change in the Point of Contact. The email address will be provided at contract award.

4.2. OVERHAUL AND MODIFICATION: The Contractor shall perform a thorough inspection of the equipment and overhaul and modify as needed. This shall include replacement of broken parts and replacement of parts that are within 1350 hours of their life limits, and the removal of any foreign matter or corrosion. Parts of a component found to be in serviceable condition as a result of inspection and functional testing shall be reused. Parts found to be beyond economical repair (BER), shall be replaced with parts that meet the current DMWR specifications and drawings. The Contractor is permitted to exchange usable material from one Coast Guard unit to another for the purpose of returning units to a serviceable condition. If an item is found to be BER but still has workable sub-components, the Contractor will issue a request for modification of the delivery order to scrap the item. Upon receiving the signed modification, the Contractor will then be permitted to keep the item in a Customer Bonded Stockroom for the purpose of utilizing the sub-component for Coast Guard overhaul efforts under this contract. Upon exhaustion of all usage parts of a scrapped component or six (6) months after the expiration of this contract, the item will be scrapped and mutilated in accordance with ALC Material Disposal Procedures (Attachment 1) in conjunction with the overhaul facility’s procedures. At the expiration of this contract, all remaining parts in serviceable condition shall be return shipped to the United States Coast Guard (ALC).

NOTE: During the overhaul of the Cold Section Module P/N 6064T26G01, the #4 bearing (most current part number and configuration), shall be replaced 100% of the time.

4.3. CORROSION REMOVAL AND TREATMENT: Remove and treat areas affected by corrosion in accordance with the current DMWR specifications and drawings. If the DMWR specifications and drawings are nonexistent or unclear, the contractor shall contact the Contracting Officer for approval to use non-DMWR specifications or drawings. During inspection and functional testing, the presence of corrosion in an assembly or component or part thereof shall constitute reason for a more thorough disassembly and inspection. Should corrosion be found, disassembly shall be made only to the extent necessary to remove corrosion or replace the parts affected. Corroded parts shall be replaced except in those cases where removal of corrosion from part will not impair efficiency of safe operation of the part.

NOTE: Coast Guard aircraft operate primarily in a saltwater environment and are subject to corrosion. Contractors are advised to expect corrosion on equipment to be overhauled under this contract.

4.4. CHANGES TO SPECIFICATIONS AND DRAWINGS AND OBSOLETE PARTS AND PROCESSES: The Contractor shall notify the Contracting Officer in writing when changes are made to the DMWR specifications or drawings applicable to components listed in the schedule. Such notification shall include the nature of the changes and details sufficient for the Coast Guard to evaluate the scope and impact of the change. In addition, when the Contractor receives an assembly or component for which certain parts or processes have become obsolete, the Contractor shall within thirty (30) calendar days after receipt of the assembly or component notify the Contracting Officer in writing and submit: 1) rationale and verification of any specification change or obsolete part or process, and 2) a written estimate of the effort required to accomplish the overhaul. Such estimates shall include nomenclature, part number, cost, quantity of replacement parts and total labor hours. The Contractor shall substantiate cost of parts with invoices or catalog pricing. The Contractor’s delivery obligation for the components identified shall be suspended as of the date of notice to the Contracting Officer. The Contracting Officer will within thirty (30) calendar days after receipt of the Contractor’s written estimate, make a written determination as to the disposition of the component. A new delivery date will be negotiated. Written approval to perform in accordance with the revised specifications or drawings and obsolete part processes must be obtained from the Contracting Officer prior to commencement of work. The Coast Guard reserves the right to waive any specifications.

4.5. SERVICE BULLETINS AND MODIFICATIONS: The Contracting Officer shall notify the Contractor in writing for components requiring incorporation of a service bulletin or modification. Upon receiving such notice, the Contractor shall submit within thirty (30) calendar days a detailed proposal which shall include the following:

a. A listing of replacement parts and materials.

b. New part numbers and if applicable the national stock numbers.

c. The time needed to effect the modification.

d. A cost breakdown including the cost of each part required.

e. The number of labor hours at the labor rate specified in the schedule for the applicable period.

Within thirty (30) calendar days of receipt of the proposal, the Contracting Officer shall initiate negotiations for a firm fixed price contract with the Contractor based on the information in the proposal and any other information which may be available. The agreed upon price and terms then become the standard firm fixed price for incorporation of that service bulletin or modification in each subsequent component submitted to the Contractor for overhaul if not previously incorporated.

4.6. UNUSUAL DAMAGE, CANNIBALIZATION OR SCRAP EVALUATION: The Contractor shall within fifteen (15) calendar days of receipt of a component for overhaul notify the Contracting Officer in writing that the item is considered unusually damaged and requires an Unusual Damage or Scrap Evaluation. If the component is deemed scrap the Vendor must provide a copy of the CRR (clearly marked as “SCRAP”/BER) to: Engineering Services Division (ESD) ACMS Tracking, Bldg. 63

Aviation Logistics Center

Elizabeth City, NC 27909-5001

A copy of the “CRR” is provided with each component NOTE: Firm fixed prices proposed in the schedule for overhaul do not apply to assemblies and components which have been cannibalized of repairable parts or severely damaged due to mishandling or crash damage. These items shall be evaluated at the firm fixed price specified in the schedule for Unusual Damage Evaluation or Scrap.

4.6.1. UNUSUAL DAMAGE CONDITION REPORT: When a component is processed for Unusual Damage Evaluation, the Contractor shall within thirty (30) calendar days of receipt of the item submit an Inspection Condition Report with an overhaul price or scrap proposal. The proposal will include all parts and labor needed to return the unit to a satisfactory condition after meeting the DMWR minimum performance specifications and physical characteristics of a newly overhauled component. The proposal shall contain the National Stock Number (NSN), part number (P/N), nomenclature, and serial number (S/N) of the component, a listing of replacement parts and materials required, the time needed to effect the overhaul, and a cost breakdown including the cost of each required part and the number of labor hours. The hourly rate will be as specified in the schedule. The proposal shall not include the work involved in the tear down and inspection as this is covered by the firm fixed price specified in the schedule for Unusual Damage Evaluation. Within thirty (30) calendar days of receipt of the Inspection Condition Report and overhaul price proposal, the Contracting Officer shall either deny authorization for the overhaul or initiate negotiations for a firm fixed price with the Contractor. Upon mutual agreement as to price, a delivery order or delivery order modification will be issued to require overhaul at the agreed upon terms. If overhaul is not desired, the Contracting Officer shall provide the Contractor with written disposition instructions for the scrap item. The Contractor shall be entitled only to appropriate compensation for Unusual Damage Evaluation or Scrap as stated in the schedule.

4.7. CONDEMNED PARTS AND MATERIALS: The Contractor shall maintain a scrap holding area for all components that are life limited, have unusual damage or corrosion, or components that exceed a value of $5,000.00. These components will be held for review during a biennial scrap review. For all components not included in the above description and deemed by the Contractor to be scrap shall be immediately rendered unusable and discarded.

4.8. REPORTING REQUIREMENTS:

4.8.1. MONTHLY PRODUCTION REPORT: The contractor shall submit monthly production reports to the Supply Cell Leader and Contracting Officer no later than the tenth day of the each month. A production report shall provide the status of contract line items received, being overhauled, or shipped during the monthly reporting period. Any format is acceptable as long as the report provides the following information; nomenclature, part number, national stock number, serial number, delivery order and contract line item number, receipt date at contractor’s facility, date scheduled to be inducted, date inducted, date scheduled for delivery, total days in work, if the part is late and any comments.

Notification by facsimile or email is acceptable, however email is the preferred method: submit fax to (252) 335-6790, ATTN: MRR Supply Cell Leader. The email address will be provided by the Contracting Officer at time of award.

4.8.2. AVIATION COMPUTERIZED MAINTENANCE SYSTEM REPORTS: The Aviation Computerized Maintenance System (ACMS) is a computerized system used to record maintenance of aircraft components and assemblies. The Contractor’s responsibilities within ACMS consist of submission of the required forms, as outlined herein. Components contained in the solicitation, as well as some subassemblies, are serial number tracked, and upon receipt at the Contractor’s facility, include a Significant Component History Record (SCHR) and a Component Repair Record (CRR).

4.8.2.1. A current copy of the SCHR and CRR will accompany each delivery of components to the Contractor. The Contractor shall ensure they identify the correct component part number and serial number. All discrepancies shall be reported to the Contracting Officer prior to performance of work. The Contractor shall maintain a copy of each completed CRR for a period of ninety (90) days.

4.8.2.2. Upon completion of the overhaul, the Contractor shall complete the CRR provided with each component. One copy of the CRR shall be sent with the component and a copy mailed to:

Engineering Services Division (ESD)

ACMS Tracking, Bldg. 63

Aviation Logistics Center

Elizabeth City, NC 27909-5001 These forms are considered deliverables under the contract. Noncompliance with these instructions shall result in nonpayment of invoices.

4.8.3. CONDITION REPORT FOR EXCLUSIONS: The Contractor shall submit a Condition Report in accordance with paragraph 4.6.1 for unusually damaged assemblies and components received which indicate obvious misuse, cannibalization or severe damage due to mishandling or crash damage. The report shall be submitted within thirty (30) calendar days of receipt of the item.

4.9. DIMINISHING MANUFACTURING SOURCES: Upon determination, by the Contractor, that a process or component required in the delivery of the end item ordered hereunder is or may become unavailable due to obsolescence or diminishing sources, the Contractor shall notify the Contracting Officer of this condition.

As lifetime buy candidates are identified, the Contractor shall provide written notification to the Contractor Officer with regards to funding requirements and cutoff dates to support order placement. In the event that the Contractor elects not to support a lifetime buy or the opportunity for a lifetime buy does not exist, the obsolescence and diminishing sources issues identified shall be dis-positioned as follows:

Within sixty (60) days after notification, the Contracting Officer shall either:

a. Request and authorize the preparation and submittal of an Engineering Change Proposal (ECP) for the redesign effort necessary to deliver the end product under a separate Time and Material Contract or Purchase Order, or

b. Terminate the order for convenience in accordance with the provisions of FAR 52.249.

When an ECP is submitted to the Government, the Contracting Officer shall within sixty (60) days of receipt of the ECP either:

a. Authorize the redesign effort under a separate Time and Material Contract or Purchase Order, or

b. Terminate the order for convenience in accordance with the provisions of FAR 52.249.

6.0. PACKAGING AND MARKING: The Contractor shall comply with Military Standard 129, Marking for Shipment and Storage, (latest revision) with the following exceptions:

a. Any items for which the DMWR requires a special container shall be shipped to the Contractor and returned from the Contractor in the appropriate container.

b. Each individual container shall be labeled on the outside with National Stock Number, Bar Code of National Stock Number, Part Number, Serial Number, Quantity, Nomenclature, Contract Number, and Line Item Number on a permanent label.

c. The internal packaging material shall be sufficient to prevent damage during shipment, handling, and storage. Each unit shall be packaged to protect against electrostatic damage as found in MIL-STD-2073-1D, Preservation Methods, dated 10 May 2002 with Change Notice 1. Preservation protection must be sufficient to prevent corrosion, deterioration, or decay during storage for a period of not less than one year. Preservation coating must not be applied to the component.

d. The only information that must be bar coded is the National Stock Number.

e. Packaging material shall not consist of the following materials: popcorn, shredded paper, Styrofoam of any type or peanut style packaging.

f. When the Aircraft-on-the-Ground (AOG) clause is invoked, the outside of the shipping container shall be marked “AOG” in highly visible lettering, at least 2” in height.

g. Direct shipments of “A” condition asset to Coast Guard Air Stations when an Aircraft-on-the-Ground (AOG) situation arises may be necessary.

The Contracting Officer will notify the Contractor when noncompliance with any of the requirements set forth in paragraph 6.0 above is noted so that corrective action may be taken. The Contractor shall within 24 hours after such notification, give the Contracting Officer disposition instructions for such items. If the Contractor elects for the Coast Guard to correct the deficiency, the Coast Guard may assess the actual costs for correcting the deficiency. The Contractor agrees that the total costs may be deducted from the invoiced amount prior to payment. An estimate of the actual cost for the Coast Guard to correct noted deficiency(s) will be provided at the time the Contractor is notified of any noncompliance.

7.0. INSPECTION AND ACCEPTANCE: Testing requirements specified in Army Depot Maintenance Work Requirement (DMWR) Manuals 1-2840-248-1 & 2 shall be accomplished prior to Government acceptance. Where the DMWR requires this testing to be accomplished on a slave module, the Contractor shall be responsible for providing this test equipment. All parts repaired under the provisions of this contract must be airworthy and suitable for installation on USCG aircraft. The Contractor shall furnish a Certificate of Conformance in accordance with FAR Clause 52.246-15 for all components. These forms shall be packaged with each component and copies shall be included with the invoice. The Government considers components Ready for Issue (RFI) upon acceptance. Components determined to be non-RFI upon installation may be returned to the Contractor with a Quality Deficiency Report for rework for evaluation as mutually agreed upon. FAILURE TO SUBMIT THE APPROPRIATE CERTIFICATES SHALL CONSTITUTE AN IMPROPER INVOICE AND WILL RESULT IN NONPAYMENT.

7.1. FINAL INSPECTION: Supplies will be examined at destination for quantity, damage in transit, and verification that all required documentation has been provided.

8.0. MATERIAL INSPECTION AND RECEIVING REPORT: At the time of each delivery of supplies or services under this contract, the Contractor shall prepare and furnish to the Government a properly completed DD Form 250, Material Inspection and Receiving Report (MIRR) or Commercial Bill of Lading.

The packaging slip shall include the following information: (1) National Stock Number, (2) Part Number, (3) Nomenclature, (4) Serial Number, (5) Contract Number, (6) Task/Delivery Order Number, (7) Line Item Number, and (8) Quantity. Two copies of the packaging slip shall be submitted with the shipment. One copy inside the container and one copy shall be attached to the outside of the shipping container.

9.0 EARLY AND LATE DELIVERIES: The Coast Guard desires early deliveries therefore early shipments are encouraged as long as no additional costs are incurred by the Coast Guard.

All requests for time extensions shall be in writing and shall include substantiation of the need for such time extension(s) in accordance with FAR 52.212-4 (f) Excusable delays. If nonperformance is not covered by an excusable delay the contractor and the Contracting Officer shall negotiate the consideration for the approval of the extended delivery date at which time a modification to the task order will be issued to reflect the consideration and the extension.

10.0. SHIPPING INSTRUCTIONS: Material being returned to the Government under this Schedule shall be shipped via Government Bill of Lading (GBL), or prepared freight in accordance with FAR 52.247-65, to the following address unless indicated otherwise on the delivery order:

USCG Aviation Logistics Center

1664 Weeksville Road

Receiving Section, Bldg 63

Elizabeth City, NC 27909-5001

MARK FOR: (Applicable Delivery Order Number and Item Number)

Reimbursable Transportation for FOB Origin, Freight Prepaid, Orders: Shipment to destination(s) shall be prepaid and subject to reimbursement. The transportation cost shall be shown as a separate item on the invoice. If shipping charges exceed $100.00, it must be supported by a freight bill. Parcel Post shipment requires a notification on the invoice giving the mailing rate and parcel zone.

11.0. URGENT REQUIREMENTS: Aircraft on the Ground (AOG) will necessitate a special schedule. When the Contracting Officer notifies the Contractor of an AOG situation, the Contractor shall endeavor to ship requirements identified as AOG directly to the Coast Guard Air Station as quickly as possible. Material will be shipped by the fastest traceable means, e.g. airfreight “next day delivery”. The shipping container will be marked with two inch letters “AOG” on the outside in a highly visible method. The Contractor shall be allowed the additional compensation for delivery charges incurred under this requirement.

12.0. F.O.B. POINT: Offers are invited on the basis of F.O.B. Destination, Contractors Facility.

13.0. PERIOD OF PERFORMANCE: The period of performance for this contract shall be a one-year base period, followed with four (4) one-year option periods.

13.1. DELIVERY SCHEDULE: 90 Days after receipt of item at the Contractor’s facility.

14.0 CORRESPONDENCE:

Invoices are to be sent to the following address:

Chief, Fiscal Branch

USCG Aviation Logistics Center

Bldg. 63

Elizabeth City, NC 27909-5001 All reports and correspondence shall be directed to the Contracting Officer at the following address:

Contracting Officer

USCG Aviation Logistics Center

Attn: MRR Supply Cell, Bldg 79

1664 Weeksville Road

Elizabeth City, NC 27909-5001

Reports and correspondence may be transmitted electronically via email or facsimile.

14.1 POINT OF CONTACT:

All questions pertaining to contractual issues shall be addressed to the individual specified in Block 7 of the Standard Form (SF) 1449, page one (1) of this document.